A division bench of the Delhi High Court has held that the GST provisional order under section 83 of the Central GST Act, 2017 would cease to effect after the expiry of one year.
The petitioner, M/s Pashupati Properties Estate Private Limited has challenged a letter dated 07th December, 2020 issued by the GST department under Section 83 of the CGST Act, 2017 whereby has directed the Bankers of the Petitioner to provisionally attach immovable property No.6, The Greens, Rajokari, Delhi-110038 in the name of the Petitioner.
After considering the arguments from both the sides, Justice Manmohan and Justice Sudhir Kumar Jain has observed that after the issuance of the impugned letter dated 07th December, 2020, no fresh attachment order in Form GST DRC-22 has been issued.
While allowing the petition, the High Court observed that “According to Section 83(2) of the CGST Act, every provisional attachment order ceases to have effect after the expiry of a period of one year from the date the order was passed under Section 83(1) of the CGST Act. Consequently, the impugned provisional attachment order/letter is no longer effective. Accordingly, this Court directs the Respondent to defreeze the bank accounts and release the immovable properties of the Petitioner not later than three days from today.”
M/S PASHUPATI PROPERTIES ESTATE PRIVATE LIMITED vs COMMISSIONER OF CENTRAL TAXES GST DELHI, (EAST)
CITATION: 2022 TAXSCAN (HC) 210
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